Andean Mining IPO To Benefit From Colombia Exploration Boom With High Grade Copper-Gold Target

Andean Mining plans 15,000 m of drilling to strengthen a first JORC resource on its El Dovio copper-gold project.

Andean Mining is looking to raise up to $ 7 million to advance its El Dovio copper-gold project. The offer is open now and is expected to close on December 9 with a quote around December 22.

The company acquired 100% of the El Dovio property under an agreement in 2020 with Canadian listed company Newrange Gold Corporation, which has chosen to focus on its projects in Ontario and Nevada.

Newrange will own nearly 3 million shares representing around 4% of the Andes.

Colombia ranked first mining destination in South America

The extent to which Colombia has transformed its image in recent years is illustrated by the fact that, in the Fraser Institute’s annual assessments of mining jurisdictions for 2020, Colombia is ranked as the top destination in South America, well ahead of the mining powers, Chile and Peru.

It also ranks 13e in the world, counting the states and provinces of Canada, the United States and Australia as individual jurisdictions, or fifth in the world on a country-by-country basis.

So, Andean Mining’s Initial Public Offering (IPO), which is raising funds for an advanced project, gives local investors exposure not only to a high-grade copper and gold deposit, but also to an entry anticipated in the future number one mining jurisdiction of South America. .

Very experienced team

Andean CEO and Managing Director of the Andes, William Howe has extensive experience exploring along the Andean Range, particularly in Colombia, where he has lived for four years and will return once the company is listed on the stock exchange.

He led a team that discovered two porphyry copper systems, one in Chile and the other in Peru, and carried out a feasibility study for the development of an underground gold mine in Colombia. This gives Howe a detailed knowledge of the current cost structures in Colombia, which he estimates to be, on average, about half of what they would be in Australia or Canada.

As part of the project’s purchase from Newrange, Andean also took over the field team in Colombia, which has an extensive exploration database.

Very high marks

The advanced El Dovio project has confirmed grades that vary on average from 4 to 6 grams per tonne of gold and 2.5 to 3.5% copper over average widths of 3 to 6 m. Individual samples up to 17% copper and 104 g / t gold were found.

In his letter to investors, Andean President Dr Phillip Wing said the company’s volcanogenic massive sulphide (VMS) target is located on an “extended” mineralized belt that runs through western Colombia and l ‘Ecuador.

“The work to date indicates a deposit of high unit value, exceptional metallurgical characteristics and [with] low price sensitivity, ”he added.

The mineralization remains open both laterally and at depth.

Work program and first JORC resource

Andean plans 15,000 m of infill and extension drilling, aimed at establishing a first JORC resource at El Dovio. Andean hopes to complete the drill program within approximately nine months of listing and be able to report the JORC resource well within 12 months.

A client note from Sydney-based business advisers Novus Capital said that the Andes’ “overarching” strategy is, first of all, to develop sufficient resources in El Dovio’s high-grade lenses to support an operation of 1000 tonnes per day for at least 10 years. as a start-up operation.

“This option presents the best case in terms of low capital and operating costs and maximization of returns to shareholders,” said Novus.

Colombia emerges as a “major” mining destination

Andean notes in his IPO presentation that “Colombia is emerging as a major new mining destination” with several majors developing copper and gold mines.

El Dovio des Andes’ neighboring projects include the El Roble VMS copper-gold mine, owned by Atico Mining, listed in Canada, and Zijin Mining’s Buritica gold mine, also in production.

The other nearby project is the Quebredona deposit equivalent to 28 million ounces held by AngloGold Ashanti (ASX: AGG).

Competitive cost structure

The notable features of Andean are its VMS high-grade copper and gold deposit in a jurisdiction that has a positive attitude towards mining and a cost structure that makes it very competitive against other countries. He also benefits from a top-notch squad, both in Australia and on the pitch in Colombia.

“The IPO offering is very affordable compared to comparable companies with similar prospects,” the company said.

Andean Mining will trade under the ASX code “ADM” when listed next month.


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